I’m not necessarily a fan of the AOB/AOC but not for the reasons you bring up. Being a licensed public adjuster across the nation http://prideadjusters.com I’m not a fan because it allows the contractor to step into the claim adjustment space when they don’t necessarily have the skillset or licensing to do so. Claims may get maladjusted and the contractor may move on to greener pastures when the claim could have been successfully negotiated by a licensed adjuster. Or, the contractor may not understand certain statutes or other entitlement benefits the insured may be owed such as ALE – and never bring those up.
I’m trying to see your article as being light hearted but addressing a serious issue. You somewhat get there – but fully leaning to the insurance company side and not pointing out the thousands and thousands of successfully negotiated claims through an AOB/AOC by contractors. Of course there are unscrupulous contractors that can take advantage of the process or not deliver the quality that they promised. But they don’t need an insurance claim to do that. The insured should still utilize their due diligence before ever entering into a contract like this and essentially turning their claim over.
But it doesn’t make all contractors that utilize AOB bad. I could post many articles about agents that took insured’s money and never opened policies for them. But that doesn’t paint the whole picture.
Explaining the AOB/AOC should include why contractors utilize this. And remember, I’m not a fan. But it’s not so they can just rip people off. It’s primarily the other way around. A contractor doesn’t want to deploy a sales team, spend hours inspecting and writing an estimate, meeting with the insurance company, negotiating and settling a claim – just to have the homeowner either hire a lowball contractor or not even do the work at all and just pocket the money. They are protecting themselves. Or at least attempting to.
And yes – in the process a contractor here and there takes the money and runs or does poor quality.
I’d like to see the AOB/AOC done away with and I think it is wise that a property owner first get what they are entitled to and then decide their options or which contractor they are going to sign with. It’s just a prudent approach.
But I don’t think painting all these contractors with such a broad stroke is fair and reasonable anymore then saying all insurance agents are scum because a few took peoples money.
I’m not necessarily a fan of the AOB/AOC but not for the reasons you bring up. Being a licensed public adjuster across the nation http://prideadjusters.com I’m not a fan because it allows the contractor to step into the claim adjustment space when they don’t necessarily have the skillset or licensing to do so. Claims may get maladjusted and the contractor may move on to greener pastures when the claim could have been successfully negotiated by a licensed adjuster. Or, the contractor may not understand certain statutes or other entitlement benefits the insured may be owed such as ALE – and never bring those up.
I’m trying to see your article as being light hearted but addressing a serious issue. You somewhat get there – but fully leaning to the insurance company side and not pointing out the thousands and thousands of successfully negotiated claims through an AOB/AOC by contractors. Of course there are unscrupulous contractors that can take advantage of the process or not deliver the quality that they promised. But they don’t need an insurance claim to do that. The insured should still utilize their due diligence before ever entering into a contract like this and essentially turning their claim over.
But it doesn’t make all contractors that utilize AOB bad. I could post many articles about agents that took insured’s money and never opened policies for them. But that doesn’t paint the whole picture.
Explaining the AOB/AOC should include why contractors utilize this. And remember, I’m not a fan. But it’s not so they can just rip people off. It’s primarily the other way around. A contractor doesn’t want to deploy a sales team, spend hours inspecting and writing an estimate, meeting with the insurance company, negotiating and settling a claim – just to have the homeowner either hire a lowball contractor or not even do the work at all and just pocket the money. They are protecting themselves. Or at least attempting to.
And yes – in the process a contractor here and there takes the money and runs or does poor quality.
I’d like to see the AOB/AOC done away with and I think it is wise that a property owner first get what they are entitled to and then decide their options or which contractor they are going to sign with. It’s just a prudent approach.
But I don’t think painting all these contractors with such a broad stroke is fair and reasonable anymore then saying all insurance agents are scum because a few took peoples money.